What Is An MCC?

Aside from being a well kept secret, this is a GREAT program!

 Lake Stevens Homes for Sale 

“Mortgage Credit Certificate”, or MCC, is a Federal Program to assist First Time Home Buyers  in purchasing a home.  The program allows a home owner to take a credit, of up to 20% of their annual mortgage interest, off their “tax liability” or tax bill.

Funds are limited, so don't wait to apply.

Tax Credit is a dollar-for-dollar reduction of your total federal income tax. 
    
Home owners can adjust their federal income tax withholding to reflect the value of the MCC. 

Borrowers have less money withheld from their pay checks.

Value of MCC must be considered by the lender during loan qualifying.

Home owners receive the standard tax deduction for the remaining 80% of mortgage interest.

How Does It Work? (FHA):

Sales Price    $ 375,000

Down Payment 3.5% -13,125

Base loan Amount (5%(5.721%APR) 30 year fixed)  $ 361,875

Total Loan w/UF Mortgage Ins               $ 368,207    

Interest Paid Annually @ 5%     $ 18,410

20% of Annual Interest     $ 3,682

Buyer Benefits:

20% of annual interest     $ 3682.07    

Divide by 12 months in a year 1/12 = ?  

Monthly benefit  to buyer     $ 306.83    

A first time buyer would receive a monthly tax benefit of $306.83dollars a month to offset the cost of the home on a $375K loan.

Example:

Payment W/O MCC                             Payment with MCC
 

This is the qualify payment the bank is obligated to use! 

Home Buyer Requirements: 

1.  The borrower must be a first-time home buyer.
*Unless the home is located in a target area*

2.  The borrower’s annual income must fall within the program income limits.

Call me today and see if YOU qualify!!  

                                 Call me for details! 425 870-9452

Visit the "Washington State Housing Finance Commision" for more information:

 Visit the "IRS" for extremely detailed information: 

Information provided by Guild Mortgage Company/The Thomas Group/Lynwood, wa. Not all lenders are qualified for this program. Consult your tax preparer for additional information.